The entertainment giant says it was left with no choice but to sue to protect itself from retaliation for expressing a political viewpoint.
In an escalation of the standoff between Disney and Ron DeSantis, the entertainment giant has filed a lawsuit in Florida claiming the Republican governor illegally voided an agreement that allegedly transferred certain powers of the company’s now-dissolved special district back to Disney.
Disney is asking a court for a declaration that the legislation is unlawful and unenforceable for multiple reasons — including that it was “enacted in retaliation for Disney’s political speech in violation of the First Amendment.
“A targeted campaign of government retaliation — orchestrated at every step by Governor DeSantis as punishment for Disney’s protected speech — now threatens Disney’s business operations, jeopardizes its economic future in the region, and violates its constitutional rights,” states the complaint, which was filed Wednesday in Florida federal court. “Today’s action is the latest strike: At the Governor’s bidding, the State’s oversight board has purported to ‘void’ publicly noticed and duly agreed development contracts, which had laid the foundation for billions of Disney’s investment dollars and thousands of jobs. This government action was patently retaliatory, patently anti-business, and patently unconstitutional. But the Governor and his allies have made clear they do not care and will not stop.”
The deal was quietly signed Feb. 8, the day before the state legislature passed a bill reshaping the leadership structure and changing the name of Disney’s Reedy Creek Improvement District. DeSantis taking control was meant to cap off a retaliatory move by Florida Republicans for Disney’s opposition to the so-called “Don’t Say Gay” law, signed in March 2022. Under the new bill, the governor has the authority to appoint every member of the special tax district’s five-member governing body. It was intended to cow Disney into keeping quiet on cultural issues or risk having the state disrupt company operations.
The complaint was filed the same day the newly-appointed board passed a resolution nullifying the agreement, which essentially rendered the board powerless outside of maintaining roads and other basic infrastructure. The 30-year pact includes approval to build another theme park and restrictions that bar the DeSantis-controlled board from making changes to Disney’s sprawling property without securing company approval.
Disney, however, argues the agreement doesn’t undermine the powers of the board. It says the contracts are basic land use agreements between a developer and its local regulator that are “similar in character to deals involving special districts to fix long-term development rights and obligations.” They’re necessary to “facilitate the certainty needed to ensure investment and effective commercial progress,” the complaint says.
Contrary to statements from some lawmakers, the deal doesn’t undercut the board’s ability to govern and exercise authority, including by imposing taxes, exercising the power of eminent domain, approving or disapproving building permit applications, building roads, providing emergency services, or issuing bonds, according to the complaint.
In reasserting developmental authority over the land where Disney World is located, DeSantis has also threatened further retaliation by building another amusement park, a prison or a state park on the 24,000-acre parcel near Orlando in addition to announcing legislation that would end Disney’s exemption to do its own safety inspection for rides.